After the cost of your everyday living expenses, fuel is likely to be the second biggest cost of the week. If you want to stop paying $1.70 per litre for fuel and start paying $1.00, Novated Leasing may be the way for you.
No need to avoid filling up on days where petrol prices are at their highest or going out especially on days when petrol is the cheapest. The higher petrol goes, the more you save with a Novated Lease.
What are the benefits?
Whilst you normally pay for all your car expenses with your income after it’s taxed by your employer, a Novated Lease can save you tax by paying for your running expenses with a combination of your before and after-tax pay. This will reduce your taxable income, so you pay less tax and save money!
With a Novated Lease you also don’t pay GST on your running costs, such as fuel, servicing, insurance and other normally GST inclusive vehicle expenses, which means more great savings for you!
What is included in a Novated Lease?
You have a range of operating costs for the vehicle which can be included and Salary Packaged, these include items such as:
- Fuel, Oil and Tyres
- Service & Maintenance
- Registration & Insurance
- Comprehensive Insurance
- Excess on Insurance
- Roadside Assistance
- Paint Protection
- Rust Proofing (Non-removable)
- Window Tinting
- Car Wash & Detailing
- Protection for Fabric Interior (Non-removable)
- Damage or Repairs
- Other types of Insurance
Budgeting becomes a breeze
The Salary Packaged amounts are deducted each pay cycle and held aside for you. This is a great tool to manage your vehicle expenses and your budgeting becomes a breeze.
Being able to use a fuel card is another great benefit of a Novated Lease. These cards are widely accepted at multiple participating service stations and are an easy and quick way to purchase fuel. You can also pay for your maintenance and services at participating locations, and even tyres.
You may not get a pay rise as frequently as you would like, but a Novated Lease is one realistic way to get a financial and lifestyle benefit.
Contact the team at FAA Group today to see how much you can save!